Cardano [ADA] was down 2.04% in the past 24 hours, but held on to a respectable 6.89% gain over the past week. The slowdown in momentum came around the month-old swing high of $0.258.
The Bitcoin [BTC] retracement toward $84k also contributed to ADA’s price dip. The $0.235 support level was tested last week, and the altcoin’s price might gravitate south once again.
Increased buying pressure in recent weeks meant Cardano crypto was still within an uptrend. As anticipated, high profitability among short-term holders helped stall the upward momentum, combined with the BTC price dip.
Is Cardano crypto’s $0.26 rejection a warning?
The daily close at $0.2588 on Friday, the 25th of September, barely beat the previous swing high at $0.2584. Technically, this signaled a bullish continuation, but it also solidified the $0.260 area as an important supply zone.
At press time, the CMF was above +0.05, and the OBV was also at multi-month highs. Together, the two volume indicators confirmed steady buying pressure in recent weeks and justified the uptrend.
The RSI score of 59 showed that the daily timeframe’s momentum remained bullish. Yet, the double rejection from $0.26 opened the possibility of a deeper price retracement.
In case of such a dip, the $0.235 support might hold. If it does not, the lower timeframe price charts could reveal how deep the dip could go.
Why DOGE traders must wait for the pullback to end
Cardano crypto’s price action has a bullish structure on the 4-hour timeframe, too. However, the technical indicators signaled a potential pullback in progress. At press time, the RSI dipped below neutral 50, the CMF entered neutral territory, and the OBV was beginning to slide lower.
While $0.235 is an important support level, is is likely that the price could drop as deep as the $0.206-$0.219 area. This zone represented the Fibonacci golden pocket, plotted using the latest impulse move higher from $0.190 to $0.265.
Final Summary
- The Cardano crypto higher timeframe trend remained bullish, but there was the potential for a price dip alongside Bitcoin.
- While $0.235 is an important support level, is is likely that the price could drop as deep as the $0.206-$0.219 area.
